Explain two ways policymakers respond to the inefficiencies of monopolists.

There are several ways through which policymakers would respond to monopolist inefficiency. First, policymakers can decide to control the behavior of the monopolies. The main reason for controlling their behavior is to safeguard the interest of society. For instance, monopolies have the authority to have their own prices different in a competitive market structure. Also, their behavior of producing substandard goods, which are costly, makes society carry an unnecessary financial burden. To avoid such from happening, the policymaker regulates their behavior by setting a limit on prices to prevent monopolists from raising the price, regulating the mergers, and investigating unfairness or any other cartel practices.

Secondly, policymakers can make all the monopolized industries to be more competitive. If there is no competition, the quality of the services will be inferior, and the prices can be raised or reduced at their will. However, the policymakers can make the monopolized industries more competitive by enforcing some of the laws, such as antitrust law. If the law is strictly followed, then the competition will thrive, resulting in better products at a reasonable price. The advantages of creating a competitive market within the monopolized industries are that the charges are reduced, the services and products are of high quality, and greater inventiveness. Also, with the law's use, the industries will be competing on merit and enhancing the economy's growth.